Resource strengths can contribute to competitive advantage primarily when they are?

The correct answer emphasizes that resource strengths contribute to competitive advantage when they are valuable, rare, and non-substitutable. This framework aligns with the Resource-Based View (RBV) of competitive advantage, which suggests that a firm must possess resources that are not only useful in delivering value (valuable), but also unique or less accessible to competitors (rare), and cannot be easily replaced by other resources or alternatives (non-substitutable).

When resources meet these criteria, they can help a company differentiate itself in the market, create unique offerings, and establish a sustainable competitive position that rivals cannot easily copy or overcome. For instance, a patented technology (valuable and non-substitutable) or a strong brand (rare) that resonates uniquely with customers can secure a lasting advantage over competitors, leading to superior performance.

In contrast, resources that are owned solely by the company do not automatically confer an advantage if they are not valuable, rare, or non-substitutable. Resources that are abundant in the industry also fail to provide a competitive edge because they are widely available to all firms, diminishing their uniqueness and strategic value. Similarly, if resources are easy to replicate by competitors, they will not sustain a competitive advantage as competitors can quickly imitate them, leading to a